The city of Boulder is considering what its energy future will look like. The goal it to acquire "clean, local and reliable" energy in the future, and one voter-approved option is to start a municipal utility. For more information on the history of this decision, click here.

GOP says energy nominee Ron Binz out of 'mainstream'

Former Colorado regulator Ron Binz said to favor renewable sources

By Matthew Daly Associated Press

Posted:
09/17/2013 11:41:26 PM MDT

Updated:
09/17/2013 11:43:16 PM MDT

Click photo to enlarge

Governor Bill Ritter, left, chats with Ron Binz, chairman of the state's Public Utilities Commission, after speaking Thursday at the Southwest Renewable Energy Conference. The event was held at the University of Colorado in 2007.

WASHINGTON -- President Barack Obama's nominee to be the nation's top energy regulator came under sharp questioning Tuesday from lawmakers concerned that he may be opposed to coal and natural gas.

Republicans and at least one Democrat on the Senate Energy Committee said they believe that former Colorado regulator Ron Binz favors renewable energy sources such as wind and solar over traditional fossil fuels such as coal and natural gas.

Specifically, Republicans said they were troubled by Binz's comment that natural gas may be a "dead end" fuel. Republicans and Sen. Joe Manchin, D-W.Va., also criticized Binz's support of a Colorado clean-air law that they said resulted in the closure of several coal-fired power plants.

Alaska Sen. Lisa Murkowski, the panel's top Republican, told Binz at the conclusion of a three-hour hearing that she would vote against his nomination to chair the Federal Energy Regulatory Commission. Murkowski said she was not convinced Binz's views were "compatible with FERC's mission" to regulate interstate transmission of electricity, oil and natural gas.

Murkowski and other Republicans also said they were concerned that Binz was not truthful when he assured them that he was not part of a coordinated effort by a green-energy group and a Washington lobbying firm to boost his nomination.

Binz served on Colorado's utilities commission from 2007 to 2011 and helped oversee efforts to reduce the state's reliance on coal-fired utility plants and increase use of renewable energy such as wind and solar power.

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He previously served as the state's advocate for energy consumers. He now works as a consultant and is affiliated with a Colorado renewable energy institute headed by former Democratic Gov. Bill Ritter.

Manchin, who strongly supports coal, said he was undecided on Binz's nomination, but his comments made clear he has serious concerns. If Manchin or another pro-coal Democrat, Sen. Mary Landrieu of Louisiana, oppose Binz, his nomination would be in jeopardy. Democrats control the energy panel, 12-10. No Republicans spoke in favor of Binz Tuesday.

Manchin said he was "skeptical" of Binz's tenure as chairman of the Colorado Public Utilities Commission.

"Mr. Binz's record shows he strongly favors renewable (energy) over other energy sources, and he favors rising rates as part of the new economy,' Manchin said.

The senator also said his coal-producing state is getting "beaten up" by the Obama administration, which he said shows little appreciation for the nation's largest source of electricity.

Binz said that as Colorado utilities chairman, he approved the state's largest coal-fired power plant, and noted that coal provides 40 percent of Colorado's electricity, the largest share of any power source.

As FERC chairman he would be "source neutral" on energy, Binz said, adding that he would emphasize reliability.

Binz told the energy panel he had spoken "inartfully" at a March forum when he called natural gas a "dead end" fuel. He said he fully embraces use of natural gas, at least for the next two decades, but is concerned that steps need to be taken by 2035 to ensure that natural gas does not contribute to greenhouse gas emissions blamed for global warming.

He called natural gas "a terrific fuel" and said it would be needed for several decades at least, until other, less-polluting energy sources can be developed.

Natural gas may even "be permanent" if technology can be developed to "capture" carbon dioxide produced by gas generation, Binz said.

He denied that he had participated in a lobbying effort on his own behalf. "I have hired no one. I am paying no one" to represent his interests before the committee, Binz said.

Sen. Ron Wyden, D-Ore., the energy panel's chairman, said FERC does not regulate coal. Wyden said he was convinced Binz shared his view that the energy commission should not "pick winners and losers" among competing energy sources.

Ballot language:
In November, Boulder voters narrowly approved two ballot issues related to starting a municipal utility: 2B and 2C. You can read the full text of the ballot language on the city's website.

Issue 2B asked voters to increase the existing utility occupation tax by up to $1.9 million a year. The money from the tax, which will be collected from customers by Xcel Energy, will be used by the city to cover the costs of moving forward with forming a municipal utility, such as more studies and legal fees.

Issue 2C asked voters for permission to actually form a municipal utility. The language allows the city to sell the necessary bonds to take over the current system from Xcel, but it states that the city may only move forward with forming a municipal utility if it can start the utility with rates that are the same or cheaper than Xcel's.

Helpful Links:City of Boulder: This is where the city is aggregating all of its documents, meeting information and updates on Boulder s energy future: bouldercolorado.gov/energyfuture

RenewablesYes: This website is run by the group of volunteers that lobbied local voters to pass a utility occupation tax in November to replace the expiring franchise fee from Xcel Energy. Now, the group is advocating for the city to secure a cleaner, more local energy supply. renewablesyes.org

Xcel Energy: Xcel is the largest utility in Colorado, and it currently provides electricity to Boulder. The city s 20-year franchise agreement with Xcel expired at the end of 2010. xcelenergy.com

Boulder Smart Energy Coalition: A citizen group that supports the city's general energy goals but has concerns about the risks involved with starting a municipal utility. bouldersec.com

SmartGridCity: Xcel Energy has installed a smart grid in Boulder. This web site provides more information on that initiative. smartgridcity.xcelenergy.com

Colorado Association of Municipal Utilities: This Colorado Springs-based group represents the state s 29 municipal utilities, which include utilities based in Lyons and Longmont. coloradopublicpower.org